Last year an operation had a cost of food consumed for meats of $310,000. In that year the operation had a beginning meat inventory of $15,000 and ending meat inventory of $16,000. What was the operation's inventory turnover for meat last year?

a. 20.

b. 21.

c. 22.

d. 23.

Inventory turnover = 20

Explanation:

Giving the following information:

Last year an operation had a cost of food consumed for meats of $310,000. In that year the operation had a beginning meat inventory of $15,000 and ending meat inventory of $16,000.

To determine the inventory turnover, we need to use the following formula:

Inventory turnover = cost of goods sold / average inventory

Average inventory = (15,000 + 16,000) / 2 = 15,500

Inventory turnover = 310,000/15,500 = 20

The company will sale and replace inventory 20 times in the period.